BRUSSELS (AP) — The European Union on Wednesday revealed details of its plan to use billions of euros in frozen Russian
assets to fund Ukraine’s needs over the next two years, but Belgium rejected the scheme and insisted that it poses major
financial and legal risks.
European Commission President Ursula von der Leyen said that the EU would cover two-thirds of Ukraine’s financial and
military needs for 2026 and 2027, which the International Monetary Fund puts at 137 billion euros ($160 billion), by
providing 90 billion euros ($105 billion).
She said that other international partners would be called on to cover the remaining third.
“Today we are sending a very strong message to the Ukrainian people. We are with them for the long haul,” said von der
Leyen while rolling out the proposal which would use Russian money as collateral to fund Ukraine’s economy and war
effort through a “reparations loan.”
Von der Leyen said that using the frozen assets would strengthen the Ukrainian position at peace negotiations with
Russia and the U.S. but it would also send a message to Moscow that “the prolongation of the war on their side comes
with a high cost for them.” She said that she had informed the Trump administration about the proposal.
EU leaders have committed to fund Ukraine over the next two years, whatever the method. The EU has already poured in
over 170 billion euros ($197 billion) since the war started in 2022.
Von der Leyen said that if the loan plan didn’t pass muster, the bloc could borrow the money on international markets in
a scheme underpinned by its long-term budget. The problem here, though, is that it would require the approval of all 27
member countries, and Hungary has consistently blocked aid to Ukraine.
The biggest pot of ready funds available is through frozen Russian assets. Most of the money is held in Belgium – around
194 billion euros as of June – and outside the EU in Japan, with around $50 billion, and the U.S., U.K. and Canada with
lesser amounts. A total of 210 billion euros worth ($245 billion) are held in Europe.
To address Belgian concerns, the commission’s complex proposal includes safeguards to protect EU nations from “possible
retaliation from Russia,” a prohibition of any release of the frozen assets, and a way to borrow money as the EU to
“underpin a loan to Ukraine.”
But Belgian Foreign Minister Maxime Prévot said that his country considers “the option of the reparations loan the worst
of all, as it is risky. It has never been done before.” Russia has described the scheme as “theft.”
Haltingly reading prepared remarks to reporters at NATO headquarters in Brussels, Prévot urged the EU to borrow the
money for Ukraine on international markets. “It is a well-known, a robust and a well-established option with predictable
“The reparation loans scheme entails consequential economic, financial and legal risks,” he said, adding that the
commission’s proposals do not address Belgium’s concerns. “It is not acceptable to use the money and leave us alone
Belgium fears that the Brussels-based financial clearing house holding the frozen assets, Euroclear, could take legal
action if Russia challenges any use of the funds or if the move harms its image and business interests.
Prévot said Belgium feels that its concerns are not being heard by its EU partners.
“We are not seeking to antagonize our partners or Ukraine. We are simply seeking to avoid potential disastrous
consequences for a member state that is being asked to show solidarity without being offered the same solidarity in
EU partners say they’re listening
In essence, the 90 billion euros would not be seized from Russia as such, as Kyiv would refund it once Moscow pays
significant reparations for the massive destruction its war has caused. Should Moscow refuse, the assets would remain
“We have listened very carefully to Belgium’s concerns, and we have taken almost all of them into account in our
proposal,” Von der Leyen said. “We will share the burden in a fair way, as it is the European way.”
Other EU partners insist that they too understand Belgium’s worries.
“We take Belgium’s concerns seriously,” German Foreign Minister Johann Wadephul told reporters. “They are justified, but
the issue can be resolved. It can be resolved if we are prepared to take responsibility together.”
His Dutch counterpart David van Weel underlined that “these funds are really, really important. We need to support the
Ukrainian economy, otherwise they will have a very tough time next year.”
“We understand the Belgian concerns, and we are willing to at least make sure that they are not alone in this,” he said.
Several EU countries have already agreed to provide financial guarantees should things go wrong.
Belgium has been earning some tax income on the assets, and the interest raised is also being used to fund a loan
program for Ukraine organized by the Group of Seven major world powers.
The European Central Bank is worried that the plan for an EU reparation loan could undermine confidence in the euro
single currency on international markets. EU leaders are due to discuss the scheme and Ukraine’s economic and military
needs at a summit in Brussels on Dec. 18.